Sell Your Land: IMF Drains the Remaining Blood Left in Ukraine

Translated by Nikita Che

15:05:17

18/01/2017

The IMF is creating new conditions in order for Ukraine to receive credits.

In order to receive new credit tranches, Ukraine must fulfill some additional conditions laid down by the International Monetary Fund. There are five items among them: raising the general retirement age, reduction in posts for government employees and civil servants, opening land markets, reports Economical Truth.

According to IMF Communications Department Director Gerry Rice, IMF envoys are continuing talks with Ukraine authorities on unanswered questions. That means the government has a good chance to receive another $1 billion tranche. Also some requirements that are stated in the renewed Memorandum for cooperation between Ukraine and the IMF should be fulfilled.

The Memorandum has 12 structure points, including seven new ones.

Firstly, Ukraine’s Cabinet before the end of January 2017 should decide on the monetization of utility subsidies.

Secondly, a pension reform. Until the end of March 2017, the Verkhovna Rada should adopt a pension reform to rise the retirement age for men by four months each year starting July 2017; for women – by six months every year from 2021. In 2027 the retirement age for both men and women should reach 63 years. [It is 55 years for women and 60 years for men currently – ed]

Also, the working life is going to be raised till 25 years from January 2017, as well as a minimal insurance life till 16 years. Now the required working life is 15 years. The Cabinet anticipates to avoid it.

Thirdly, an agricultural land reform. The new end is in March 2017.

Fourthly, Privatbank’s supervisory board must appoint a reputable international auditing firm. The end is in January 2017.

Fifthly, Privatbank’s supervisory board must appoint an international auditing firm to verify the restructuring made by the former bank stakeholders. The end is in June 2017.

Sixthly, establishing a centralized database on recipients of social assistance. The end is in June 2017.

Seventhly, parliamentary approval of legal amendments to establish anti-corruption courts. The end is in June 2017.

Eightthly, a financial police instead of actual tax one should be established till May 2017.

Ninthly, government tax service can receive the right to access bank accounts of Ukrainians for the possibility to use indirect ways for citizens’ income valuation. The end is in June 2017.

Tenthly, the Ukrainian side should refrain from taking any measures that could trigger installing or preserving tax benefits.

Eleventhly, Ukraine has actively to conduct the privatization of state-run enterprises.

Twelfthly, the Ukrainian side will accede to review the State Service Law, as well as to reduce posts for government employees and civil servants. In 2017, the number of civil servants is planned to be cut by 4%, and till 2020 – by more than 10%.